< Return to Bears page

Acquisition of Yahoo search engine would be a poor investment

The appointment of a new CEO at Yahoo in January 2009 and the considerable deterioration of Yahoo's stock price along with the continued interest in Yahoo's search engine by Microsoft suggest some likelihood that an offer for such an acquisition by Microsoft is of continuing interest to Microsoft, but it is difficult to see why Yahoo would agree to such a sale which would radically reshape and downsize its profile in the marketplace. Absent affirmative informal talks between the two companies, no formal public offer should be expected. While Microsoft feels considerable internal pressure to have a more competitive search engine offering to market leader Google, it is not at all clear that the price Microsoft would have to pay to purchase Yahoo's search engine would in fact be economically justifiable. Failing such a justification, the stock price in such a scenario would be expected to suffer after some initial enthusiasm

Wikinvest © 2006, 2007, 2008, 2009. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.